USD/CHF technical analysis: Traders await Swiss unemployment rate to break descending triangle

A four-day long descending triangle formation limits USD/CHF moves ahead of Swiss Unemployment Rate.
100-hour EMA offers an additional barrier to the upside.

Anil Panchal FXStreet

In addition to its choppy 11-pip trading range since morning, a four-day long descending triangle formation also limits USD/CHF pair moves as it trades near 0.9740 heading into Friday’s European market open.

Investors will seek clues from Switzerland’s July month seasonally adjusted Unemployment Rate (MoM) that is expected to remain unchanged at 2.3%.

While 0.9705 and 0.9780 define the extreme-lines of the triangle pattern, 0.9730 and 100-hour exponential moving average (EMA) level of 0.9770 can act as intermediate stops during either side momentum.

Additionally, pair’s break of 0.9705 will have to slip beneath the monthly low of 0.9692 in order to aim for further downside whereas an upside clearance of 0.9780 can trigger fresh rise towards 50% Fibonacci retracement of a seven-day downpour, at 0.9834.

USD/CHF hourly chart

Trend: Sideways

1. R3 0.9828
2. R2 0.9808
3. R1 0.9778
PP 0.9758
1. S1 0.9728
2. S2 0.9707
3. S3 0.9678

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD extends decline as weak jobs data bolsters BoE rate cut bets

The Pound Sterling continued to backslide under sustained pressure on Wednesday, following through after the UK employment report on Tuesday showed a labour market deteriorating faster than expected.

Gold rises above $4,950 as US-Iran tensions boost safe-haven demand

Gold price holds positive ground near $4,985 during the early Asian session on Thursday. The precious metal recovers amid shifts in geopolitical sentiment, boosting safe-haven demand. Traders will keep an eye on the release of US Initial Jobless Claims, Pending Home Sales data, and the Fedspeak later on Thursday.

Australia unemployment rate set to edge up within overall strong labor market

The Australian monthly employment report is scheduled for release on Thursday at 00:30 GMT, and market participants anticipate a modest increase in jobs in January. The Australian Bureau of Statistics is expected to announce that the country added 20K new jobs in the month, while the Unemployment Rate is forecast at 4.2%, up from the 4.1% posted in December.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.